Compressed Natural Gas Market by Source (Associated Gas, Non-Associated Gas, Unconventional Methods), Application (Heavy-Duty Vehicles, Light-Duty Vehicles, Medium-Duty Vehicles) - Global Forecast 2024-2030

[183 Pages Report] The Compressed Natural Gas Market size was estimated at USD 32.22 billion in 2023 and expected to reach USD 35.42 billion in 2024, at a CAGR 10.32% to reach USD 64.09 billion by 2030.

Compressed natural gas (CNG) is a fuel prepared from natural gas, primarily composed of methane. It is stored and transported at high pressure, typically in cylindrical tanks. Compared to other fuels, including gasoline or diesel, CNG is environmentally cleaner, emitting fewer pollutants and greenhouse gases when burned. It is an alternative to traditional automotive fuels and domestic and industrial energy applications. Adopting CNG in transportation is increasingly favored due to its cost-effectiveness and environmental benefits. These advantages make CNG a compelling alternative amidst rising pollution and fossil fuel dependency concerns. Additionally, supportive government measures, including stringent pollution control regulations and financial incentives such as subsidies, are pivotal in driving CNG's market growth. Such initiatives facilitate the broader adoption of cleaner energy and underscore governmental commitment to sustainable transportation solutions, further driving market growth. However, compressed CNG requires specialized infrastructure for fueling stations and vehicle storage tanks, which are considerably more expensive than those needed for conventional fuels. These high costs can deter new entries into the market and limit the expansion of CNG as a widely used fuel alternative, particularly in regions with less economic flexibility to invest in new technologies. Developing improved CNG storage systems that offer higher fuel capacity in a compact design provides a significant opportunity for market expansion. Technological improvements in dispensing equipment facilitate rapid and safer refueling, encouraging the adoption of CNG vehicles.

Associated gas is natural gas found in conjunction with oil in underground reservoirs. Initially often flared as a byproduct of oil drilling, associated gas is captured and utilized, reducing environmental impacts and increasing efficiency. Associated gas is preferred in regions with significant oil extraction activities. Non-associated gas is natural gas extracted from reservoirs that contain little or no crude oil, typically requiring different extraction and processing techniques. This gas is preferred in areas without significant oil deposits. Non-associated gas features more straightforward extraction and processing than associated gas, making it highly effective for regions focused solely on natural gas production. Unconventional natural gas extraction refers to hydraulic fracturing (fracking) and horizontal drilling primarily used to access gas in difficult-to-reach areas or tightly packed formations. These methods are preferred in regions where traditional gas deposits have been depleted or are inaccessible using standard technologies.

Heavy-duty vehicles, including buses, large trucks, and waste disposal vehicles, require robust engines capable of handling prolonged periods of intense operations. Consumers prefer CNG in heavy-duty vehicles largely due to its ability to reduce carbon emissions significantly and lower operational costs associated with fuel consumption. Light-duty vehicles include personal cars and small vans used to travel short distances. Consumers prefer CNG in light-duty vehicles primarily due to its lower emissions, contributing to an environmentally friendly image, and potential cost savings on fuel. Medium-duty vehicles include utility vehicles, smaller trucks, and shuttles that serve urban and regional routes. They prefer CNG due to the need to balance operational efficiency with compliance with environmental regulations.

In the Americas, the CNG market is driven by environmental concerns and the need for cleaner transportation solutions. The United States and Canada showcase a growing number of vehicles being converted to CNG and an increasing installation of CNG stations. In South America, countries such as Brazil and Argentina increasingly adopt CNG, primarily due to the high price of petroleum fuels and government incentives encouraging CNG use. The market's growth in the Americas is supported by stringent emission regulations and government policies favoring eco-friendly fuels. The Asia-Pacific region is showcasing growth driven by high air pollution in many cities. China and India are expanding their networks of CNG refueling infrastructure to meet increasing demand, especially in public transport and among private vehicle owners. The significant cost advantage of CNG compared to gasoline and diesel is a critical factor propelling its adoption in the Asia-Pacific region. In the EMEA region, particularly in Europe, the adoption of CNG is driven by stringent environmental norms and policies promoting cleaner fuels to reduce carbon footprints. Despite the abundance of crude oil in the Middle East, there is a growing interest in diversifying energy sources, including expanding into CNG, particularly for use in public transportation and government fleets. The CNG market in Africa is growing, with countries aiming to capitalize on CNG for domestic use.

The FPNV Positioning Matrix is pivotal in evaluating the Compressed Natural Gas Market. It offers a comprehensive assessment of vendors, examining key metrics related to Business Strategy and Product Satisfaction. This in-depth analysis empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success: Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

The Market Share Analysis is a comprehensive tool that provides an insightful and in-depth examination of the current state of vendors in the Compressed Natural Gas Market. By meticulously comparing and analyzing vendor contributions in terms of overall revenue, customer base, and other key metrics, we can offer companies a greater understanding of their performance and the challenges they face when competing for market share. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With this expanded level of detail, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

• Indraprastha Gas Ltd Advances Sustainable Energy with New Biogas Facilities

  Indraprastha Gas Ltd (IGL) has announced plans to establish 19 compressed biogas (CBG) plants across Delhi, Haryana, Rajasthan, and Uttar Pradesh to integrate these facilities into its existing city gas network. The initiative, resulting from recent agreements with two technology firms, is set to generate 0.45 million metric standard cubic meters of biogas daily from organic waste. This volume represents about 5% of IGL’s daily gas consumption. The project is anticipated to significantly alleviate municipal and agricultural waste issues while reducing the fuel costs for city gas distribution by blending CBG with natural gas. [Published On: 2024-02-07]

• Strengthening India’s LNG Ecosystem: A Strategic Partnership between Adani Total Gas Ltd and INOX India Ltd

  Adani Total Gas Ltd (ATGL) and INOX India Ltd entered into a mutual support pact to enhance the nation's Liquified Natural Gas (LNG) infrastructure. This collaboration is to supply LNG and Compressed Natural Gas (LCNG) equipment and solutions to facilitate a sustainable transition in transportation fuel, particularly for long-haul vehicles and buses currently powered by diesel, to LNG. [Published On: 2024-02-06]

• Strategic Enhancement of Regional CNG Delivery Through Advanced Requalification Services

  Hexagon Digital Wave has partnered with Compass Natural Gas to enhance the requalification of Type 4 composite cylinders in mobile pipeline trailers across the northeastern United States. This move is part of a broader strategy to increase the accessibility and efficiency of compressed natural gas (CNG) delivery via mobile pipeline systems. By adopting Hexagon's Modal Acoustic Emission (MAE) technology, this partnership aims to improve the safety, quality, and reliability of CNG transportation, capitalizing on Compass's new operational site in Montoursville, Pennsylvania. [Published On: 2023-10-19]

The report delves into recent significant developments in the Compressed Natural Gas Market, highlighting leading vendors and their innovative profiles. These include Adani Group, ANGI Energy Systems Inc., Bharat Petroleum Corporation Limited, Chevron Corporation, China National Petroleum Corp., Clean Energy Fuels Corp., CNG Fuels Ltd., Compass Natural Gas, Equinor ASA, Exxon Mobil Corporation, Hexagon Composites ASA, Indraprastha Gas Limited, J-W Power Company, Luxfer Group, Mahanagar Gas Limited, NeoGas Inc., QatarEnergy, Quantum Fuel Systems LLC, Shell plc, TotalEnergies SE, and Trillium Transportation Fuels, LLC.

This research report categorizes the Compressed Natural Gas Market to forecast the revenues and analyze trends in each of the following sub-markets:

• Source
  • Associated Gas
  • Non-Associated Gas
  • Unconventional Methods
• Application
  • Heavy-Duty Vehicles
  • Light-Duty Vehicles
  • Medium-Duty Vehicles

• Region
  • Americas
    • Argentina
    • Brazil
    • Canada
    • Mexico
    • United States
      • California
      • Florida
      • Illinois
      • New York
      • Ohio
      • Pennsylvania
      • Texas
  • Asia-Pacific
    • Australia
    • China
    • India
    • Indonesia
    • Japan
    • Malaysia
    • Philippines
    • Singapore
    • South Korea
    • Taiwan
    • Thailand
    • Vietnam
  • Europe, Middle East & Africa
    • Denmark
    • Egypt
    • Finland
    • France
    • Germany
    • Israel
    • Italy
    • Netherlands
    • Nigeria
    • Norway
    • Poland
    • Qatar
    • Russia
    • Saudi Arabia
    • South Africa
    • Spain
    • Sweden
    • Switzerland
    • Turkey
    • United Arab Emirates
    • United Kingdom

1. Market Penetration: It presents comprehensive information on the market provided by key players.
2. Market Development: It delves deep into lucrative emerging markets and analyzes the penetration across mature market segments.
3. Market Diversification: It provides detailed information on new product launches, untapped geographic regions, recent developments, and investments.
4. Competitive Assessment & Intelligence: It conducts an exhaustive assessment of market shares, strategies, products, certifications, regulatory approvals, patent landscape, and manufacturing capabilities of the leading players.
5. Product Development & Innovation: It offers intelligent insights on future technologies, R&D activities, and breakthrough product developments.

1. What is the market size and forecast of the Compressed Natural Gas Market?
2. Which products, segments, applications, and areas should one consider investing in over the forecast period in the Compressed Natural Gas Market?
3. What are the technology trends and regulatory frameworks in the Compressed Natural Gas Market?
4. What is the market share of the leading vendors in the Compressed Natural Gas Market?
5. Which modes and strategic moves are suitable for entering the Compressed Natural Gas Market?